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California Condos Sales are Up!
According to the latest data by real estate in California, condo and single detached sales have picked up but the median prices are down by more than 30%. According to Mercury News "Silicon Valley home sales spiked 24 percent in October compared with the same month last year. But that increase may be short-lived, some in the real estate industry say, because the plunging stock market and economic uncertainty have led many people to put their home-buying plans on hold."
"November will definitely be not nearly as good as October" in terms of home sales, said Susan McHan, president of Opes Advisors, a mortgage bank in Palo Alto. "There were quite a few people who pulled out in November who planned on purchasing — people whose portfolios were hit somewhere between 15 and 30 percent."
November and December are big holiday seasons with thanksgiving and Christmas falling in these months. So, typically sale of real estate and condos is down anyway. However, this year, nothing is following a trend. Sales of condos and townhomes is expected to go up even though the median prices are expected to remain low.
In fact the condo sales in California are 10 percent up over the last month however the median price seems to be reducing every passing month. The median marks the halfway point, meaning half the homes sold for more than the median, and half sold for less.
In October, 45 percent of all resale homes — houses and condos — sold in the nine-county Bay Area had been foreclosed upon sometime in the past 12 months, according to DQnews.
If you have been house hunting recently for foreclosed bargains, chances are you have probably had competition. Everyone is coming out of the woodworks in invest in real estate that is going for a bargain price. According to latest figures by DQnews.com “ An estimated 42,293 new and resale houses and condos were sold statewide last month. That was up 4.9 percent from 40,371 in September and up 63.7 percent from 25,832 for October last year. It was the strongest month since December 2006 when 43,431 homes were sold. California sales for the month of October have varied from last year's low to a peak of 70,152 in 2003, the average is 44,602. MDA DataQuick's statistics go back to 1988.”
Even in areas which were unaffected some months ago, prices have fallen by 40%. This includes the expensive bay area. So, if you are looking for a deal while the markting is bottoming out, this is the time to buy.
Even though investors are buying cash outright, if you have the right credit score, a pre-qualification letter and downpayment in the bank, you will definitely be considered a serious buyer. And, the truth is this IS the right time to invest in real estate for a first time or a seasoned buyer.
A popular choice of real estate investment are condos and townhomes in California. Despite HOA and Mello Roos, they are still very popular with yuppie couples, small families and for 'renting' income. Another reason for the growing popularity of these California condos is the price. It is so much more affordable then buying a single detached home in California, even when you count the HOA.
Still, it is always advisable to do your own research and gain some knowledge by checking out blogs,
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